Tesla has been denied tariff exemption for model 3 computer and monitor

Tesla, who is currently trying to reduce Model 3 costs and improve margin, has been officially denied the Model 3's computer tax exemption and screen over the new Chinese tariffs of the Trump administration.

Last year, President Trump announced a series of new tariffs on Chinese goods as part of an intensifying trade war with China. One of the goals was to convince American companies to keep more of their production in the US, but it's not that easy.

Although Tesla is currently producing all its vehicles in the United States, it still relies on Chinese suppliers for some parts, which may be difficult to do in the United States.

It is apparently the case for a computer inside Model 3 that Tesla describes as "the brain of the vehicle."

Earlier this year, Tesla asked the US Trade Representative's office for an exception to the tariff that would affect the price of his computer, but now Reuters reports that they have been denied:

"The US Trade Representative's office denied both requests on May 29 and said they are all about "a product strategically important or related to" Made in China 2025 "or other Chinese industrial programs. "

In its request, Tesla claimed that it is not realistic to switch suppliers and that a new 25 percent tariff f is significant enough that Tesla believes it will affect profitability and cause" financial damage "to the company.

Electrek & # 39; s Take

We are talking about two parts here, so the impact should not be too crazy, but they look expensive and everybody counts as Elon managed when he announced Tesla's last cost-saving effort.

I doubt that Someone made a lot of effort to get the exception, and therefore Tesla has hopefully looked at other options throughout the year.

The good news is that the model 3 vehicles built on Teslas Gigafactory 3 in Shanghai will not suffer from the same rates.

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